Hong Kong's three major indices closed with mixed results.
The Hang Seng Index rose by 0.76% to finish at 23,055.03 points, while the Hang Seng Tech Index declined by 0.4%. The Hang Seng China Enterprises Index advanced by 0.72%.
Pork-related stocks were among the top gainers, with Dakang Agriculture & Animal Husbandry Co., Ltd. surging more than 13%. Following months of consolidation at low levels, hog prices have recently staged a strong rebound. On July 1st, the national average price for lean hogs broke through the 10 yuan per kilogram barrier, re-entering the "10 yuan era" for the first time in over two months. The single-day increase of 4.3% marked the largest daily gain in nearly two years, contributing to a four-day rally with a cumulative increase of 0.84 yuan per kilogram. Analysts widely believe this price recovery is not merely a short-term bounce but could signal an approaching cyclical turning point.
Automobile stocks also saw notable gains, with BYD Company Limited climbing over 8%. Several new energy vehicle manufacturers released their June delivery figures. Leapmotor led the pack with over 90,000 units, while NIO and XPeng both surpassed the 40,000-vehicle milestone. BYD reported total June sales of 403,500 vehicles, with overseas exports hitting a record high and serving as a key growth driver.
Gold stocks strengthened, with China Gold International Resources Corp. Ltd. jumping more than 11%. Federal Reserve Governor Kevin Warsh commented that inflation expectations have moderated over the past month, reiterating that maintaining price stability remains the core policy objective. This overall neutral-to-dovish stance was interpreted by the market as limiting the likelihood of near-term interest rate hikes, thereby reducing bets on a more aggressive tightening path. The prevailing market view is that the Fed is not signaling imminent rate increases, which lessens upward pressure on real interest rates and indirectly supports gold prices.
The optical communications sector was among the biggest decliners, with YOFC plunging over 22%. Since the start of the year, companies including Hengtong Optic-Electric, Far East Holdings, Tongding Interconnection, Hoshine Silicon, and Han's Laser have initiated plans to expand optical fiber preform production capacity. Analysts note that while supply constraints are expected to persist in the short term, benefiting incumbents like YOFC through higher spot prices and margin expansion from increased involvement in AI data center markets, intensified competition is anticipated if new entrants successfully develop high-end products and execute their capacity expansion plans, potentially pressuring margins for existing players.
The semiconductor sector faced selling pressure, with GigaDevice Semiconductor Inc. tumbling more than 18%. The news catalyst was a reported shift in focus by tech giant Meta, which plans to pivot its business emphasis from AI models to cloud computing services and lease out excess computing capacity to external parties. This was swiftly interpreted by the market as a potential peak in capital expenditure on AI infrastructure by major tech firms. Investors grew concerned that high-performance memory and computing chips, currently facing supply bottlenecks, could soon become oversupplied, leading to a significant sell-off in semiconductor stocks.
Comments